Crypto.com has laid off some 2,000 employees in one of the biggest downsizes in the cryptocurrency industry yet. The cuts account for about 40% of the DeFi exchange’s staff, according to CoinDesk. The current layoffs come after the exchange cut over 400 jobs in the middle of June. Here’s everything you need to know about the Crypto.com layoffs.
The Crypto.com layoffs are part of “restructuring” in a bear market.
According to a Crypto.com spokesperson, the layoffs are due to a “restructuring” effort due to current bear market conditions. About 60% of the jobs cut were related to “back office and support services” without corporate ties. In June, amid the first round of layoffs, Crypto.com CEO Kris Marszalek made a Twitter thread explaining their actions.
“Our approach is to stay focused on executing against our roadmap and optimizing our profitability as we do so,” Marszalek wrote. “That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term […].”
The company spent heavily on sports sponsorships and advertising.
Notably, Crypto.com spent heavily on aggressive advertising and sports sponsorships. In May, the company was the official sponsor of the Miami Grand Prix Formula One race.
They also hired NBA star Joel Embiid to star in a commercial to promote the platform around the same time. And last November, the company renamed the Staples Center in Los Angeles to the Crypto.com Arena.
In September, Crypto.com backed out of a $495 million sponsorship deal with the UEFA Champion soccer league in Europe. They also backpedaled on a sponsorship deal with Los Angeles’s Angel F.C. Although, at publication, they are still sponsors of the 2022 FIFA World Cup. However, they’ve trimmed down the fat on their hospitality packages for the event.
At publication, Crypto.com has yet to comment on the massive round of layoffs.
